More Bandwidth Than AT&T, MCI, Sprint and WorldCom (QWST)
Friday, April 24, 1998
Qwest Communications (QWST) is the fifth to lay a nationwide
fiber optic network, but Wired Magazine says the Denver-based
upstart will be miles ahead of its competitors' 1980s-era
networks. The 16,285 route miles of cable will provide the
"virtually endless throughput" best suited for bandwidth
hungry, post-2000 applications like high-speed video and
multimedia. Slated for full-tilt operations in mid-1999,
Qwest's network will have more bandwidth than AT&T, MCI,
Sprint and WorldCom put together: 2 trillion bits per second
compared with the standard 40 tbps of today's name-brand
telcos.
Though impressed with the network, Richard Young did not
recommend Qwest to investors until they came up with a
viable way to profit from their first application:
7.5c/minute long-distance service over the Internet. "The
company has finally negotiated a deal that makes investment
in the company suitable for individual investors," Young
says, referring to a $4.4 billion merger with the fast-
growing long-distance carrier LCI International.
LCI brings a $500 million residential revenue base, a $1.1
billion business base, a state-of-the-art billing system and
a track record of 40%+/year growth for the last five years.
LCI will also boost Qwest's business sales force from 100 to
600. Though Qwest competes with the massive installed bases
and call volumes of AT&T, analysts say the traffic LCI
provides could be a cheap way to begin loading the network.
"Buy the stock now," Young says.
So who likes the meat and gravy story of FTel? Someone buy FTel out at $ 14.00........please!!!!!!!! ggg
sTempy |
